Unit 5: Goods Issues (GIs)

Lesson 1 · Posting Unplanned Goods Issues

Key concepts

A goods issue is any movement that reduces stock: staging material for production, drawing a quality sample, scrapping, internal use (cost center, project, asset) or shipping to a customer. Returns to suppliers and transfers also reduce stock but are handled by the Return Delivery and Transfer Posting actions. As with all unplanned movements, the movement type determines the business transaction and which account assignment is required; together with the material (valuation class) and the account assignment it also determines the G/L accounts.

In the standard system, consumption withdrawals are only possible from unrestricted-use stock; sampling and scrapping can be posted from all three stock types.

Effects of a valuated goods issue

• Material document and accounting document are created.
• Stock quantity and stock value are reduced; the stock account (BSX) is credited at the current material master price, and an offsetting account (e.g. consumption via GBB-VBR) is debited.
• If the movement type has consumption updating, consumption statistics increase: planned withdrawals update total consumption; unplanned withdrawals update total and unplanned consumption. Sampling and scrapping do not update consumption. Consumption is visible in the material master (plant level, Additional Data › Consumption).
• The account assignment object (e.g. cost center) is debited in Controlling.

Common consumption movement types

When several components of a bill of material are withdrawn together, MIGO can reference the BOM to propose all components and reduce manual entry.

Sampling

Usually only a small part of an inspection quantity is tested and the result drives the usage decision for the whole lot.

With active QM inspection processing, issues from QI stock can only be done within QM, not in IM.

Scrapping

For damaged material or material past its shelf life: 551 (from unrestricted), 553 (from QI), 555 (from blocked). Value moves from the stock account to a scrapping account (GBB-VNG); a cost center is normally required.

System steps

1. MIGO (Fiori: Post Goods Movement): Goods Issue + Other.
2. Default movement type, e.g. 201, 221, 241, 551; different movement types can be used per item.
3. Enter material, quantity, plant, storage location and the account assignment (cost center, WBS element, asset).
4. Post; display consumption in MM03 and documents in MB51.

Configuration (IMG)

Lesson 2 · Posting a Goods Issue with Reference

Key concepts

If material was reserved, the GI should reference the reservation: items are copied and – just as important – the withdrawn quantity is written back to the reservation so that MRP sees the correct remaining requirement. Withdrawing the full quantity sets Final Issue automatically; after a partial withdrawal where the rest is not needed, set Final Issue manually so the requirement disappears from MRP. Only items with Movement Allowed can be referenced. The MIGO search can be restricted to open (not final-issued) or final-issued items. A GI with reference to a reservation updates planned consumption.

Withdrawals for production orders

At final confirmation the remaining reserved but unneeded quantities can be flagged as final issue.

Process flow

System steps

1. MIGO: Goods Issue + Reservation (or Order); enter or search the number (selection by material, plant, account assignment, open/final items).
2. Copy items, adjust quantities, set Final Issue if needed, OK, post.
3. Check the reservation in MB23 or MB25.

Lesson 3 · Configuring Stock Determination

Key concepts

Stock determination proposes from which storage locations and stocks (own unrestricted stock, supplier consignment stock, valuation types) a requirement should be withdrawn, and in which order. It is a cross-application tool used in IM, SD/shipping and production; the strategy definitions are shared, but each application assigns its own rules. It can only be called for items without a storage location; in MIGO it can be called for a single item or for all items lacking a storage location.

A strategy is uniquely identified by three keys:

So the same material can follow different strategies in different applications (different rules, e.g. IM1 vs PP2), and different materials can follow different strategies in the same transaction (different groups). No extra assignment of a strategy to a plant is needed because the plant is part of its key.

Strategy settings

System steps

1. Define stock determination group, rule and strategy (plant + group + rule) with header and item data.
2. Assign the rule to the movement type for Inventory Management.
3. Enter the stock determination group in the material master (MM02).
4. Test: MIGO GI without storage location → call Stock Determination; the proposed split appears.

Configuration (IMG)

Lesson 4 · Allowing Negative Stock

Key concepts

Negative stock arises when a GI is posted for more than the book stock. It can be useful when, for organizational reasons, issues are entered before the corresponding receipts although the goods are physically present. Negative stock always signals that a physical movement still has to be posted, and there must be no negative stock on the balance sheet key date or during physical inventory.

Settings

1. Customizing (OMJ1): allow negative stock per valuation area, per plant (including which special stocks) and per storage location.
2. Material master: set the Negative stocks indicator in the plant storage data.

No movement type setting is needed and there is no restriction on price control.

Valuation effect

Standard-price materials: nothing special. Moving-average-price materials: the GR that clears the negative stock can post a price difference. Example: MAP 1 EUR, stock 10 pcs. GI of 16 pcs at 1 EUR → stock –6 pcs / –6 EUR. GR of 10 pcs at PO price 3 EUR: GR/IR (WRX) is credited 30 EUR; the stock account is debited 18 EUR (6 EUR to clear the negative value + 4 pcs × 3 EUR), giving 4 pcs / 12 EUR and a new MAP of 3 EUR; the remaining 12 EUR goes to the price difference account (PRD).

Analysis

Negative stock is shown in the material master (accounting, plant stock and storage location stock views) and in stock lists. Use MB52 (Warehouse Stock) with the checkbox Only display negative stocks, or MMBE.

Configuration (IMG)

Unit summary & exam focus

T-codes in this unit

Self-check questions

1. Are sampling and scrapping updated as consumption?
   Answer

   No – consumption updating is a movement type setting and is not active for sampling and scrapping movement types in the standard.
2. What does a valuated GI do to the stock account?
   Answer

   It credits the stock account (value reduction) at the material master price and debits an offsetting account such as consumption.
3. You withdraw only part of a reserved quantity and need no more. What should you do?
   Answer

   Set the Final Issue indicator manually during the GI (or later in the reservation) so MRP no longer sees the remaining requirement.
4. Which three keys identify a stock determination strategy, and where are group and rule assigned?
   Answer

   Plant, stock determination group (assigned to the material) and stock determination rule (assigned to the application / movement type).
5. At which levels must negative stock be allowed?
   Answer

   Valuation area, plant (with special stocks) and storage location in OMJ1, plus the indicator in the material master.
6. Why can a GR post to a price difference account for a MAP material with negative stock?
   Answer

   The negative quantity was valuated at the old MAP; the GR clears it at that value and values only the remaining quantity at the PO price, so the difference between PO value and stock debit goes to PRD.